Correct Answer: A. Commercial banks

Correct Answer: B. dividend

Correct Answer: B. There is a rise in prices of Securities

Correct Answer: B. liquidity ratio

Correct Answer: C. co-operative society

Explanation

(a) Elements of a Valid Contract:

(i) Offer

(ii) Acceptance

(iii) Consideration

(iv) Contractual capacity

(v) Legality

(vi) Formality.

(i)Offer: This is a proposal from one party to another or persons stating their intention to enter into contract on the term stated.

(ii)Acceptance: This is a confirmation by the person to whom the offer is made, of his intention to accept the term offered.

(iii)Consideration: This is the value in exchange between the parties in a contract.

(iv)Contractual Capacity: All parties to a contract must be capable of entering in the type of contract they wanted to enter into e.g. the person must be of age and not a minor.

(v)Legality: The object of the contract itself must be legal, if not, the contract is void and cannot be enforced.

(vi)Formality:This refers to the form a contract must take to be valid, i.e. whether it should be in writing or oral, etc.

(b) Duties of Agents to the Principal.

(i) He must obey lawful instructions of his principal

(ii) He must not compete with his principal

(iii) He must render account of his stewardship

(iv) He must not delegate his duties to another person.

(v) He must be honest in his dealings/must not make secret profit.

(vi) He must exercise reasonable care and skill in the performance of his duties.

(vii) He must keep his principal's affair secret.

Correct Answer: A. Indemnity

Correct Answer: D. public company

Explanation

A certificate of incorporation is a legal document relating to the formation of a company or corporation. It is a license to form a corporation issued by state government or, in some jurisdictions, by non-governmental entity/corporation. Its precise meaning depends upon the legal system in which it is used. also known as the birth certificate of a company. A certificate of incorporation are issued to public limited liabilty companies.

Correct Answer: B. trade

Explanation

a. Features of a Warehouse

(i) Convenient location It should be located as conveniently as possible to potential users e.g. near seaports, highways, central markets — good road network.

(ii) There should. be adequate mechanical appliances and facilities for loading, unloading and refrigeration

(iii) Spacious accommodation to facilitate easy movement of goods, equipment and people.

(iv) Adequate parking space inside the premises for free movement of vehicles, container trucks etc.

(v) Effective security arrangement should be provided to prevent theft and burglary, fire and protection of goods from rain, sunlight, wind, pests etc.

(vi) Availability of office space for administrative staff.

b. Importance of Warehousing to a business

(i) Protection of goods against theft and fire.

(ii) It ensures regular flow of goods to the market thus helping in stabilizing prices

(iii) It facilitates continuity in production as it permits precautionary holding of inventory to respond to market conditions.

(iv) It reduces risk of loss as warehouses guarantee the good condition of goods in their care.

(v) It promotes sales by allowing prospective buyers to inspect goods while in the warehouse

(vi) Some goods are blended, graded and labelled while in the warehouse.

(vii) It is revenue generating for government and individuals who own private warehouses.

(viii) It enables the owners of goods in bonded warehouse to pay the duty gradually as they sell the goods.